mom and i sold houses together for over 22 years, until she retired in 2015. i have kept on selling houses. for sellers who are moving on, and to buyers who are moving in. real estate is such a part of our daily lives, that it carries over into everything we are. and it is of interest to so many people. so i thought i would start talking. who knows...i may actually find that i have something interesting to say :) www.tkmomteam.com

Friday, July 29, 2016

House Hasn’t Sold Yet? Take Another Look at Your Price!

The residential housing market has been hot. Home sales have bounced back solidly and are now at their second highest pace since February 2007. Demand has remained strong throughout the summer as many real estate professionals are reporting bidding wars with listings actually selling above listing price. What about your house?

If your house hasn’t sold, it is probably because of the price.

If
your home is on the market and you are not receiving any offers, look
at your price. Pricing your home just 10% above market value
dramatically cuts the number of prospective buyers that will even see
your house. See chart below.

Bottom Line

The
housing market is hot. If you are not seeing results you want, sit down
with your agent and revisit the pricing conversation.

Wednesday, July 27, 2016

The Top Reason to List Your House For Sale Now!

If you are debating listing your house for sale this year, here is the #1 reason not to wait!

Buyer Demand Continues to Outpace the Supply of Homes For Sale

The National Association of REALTORS’ (NAR) Chief Economist, Lawrence Yun recently commented on the inventory shortage:

“With
demand holding firm and homes selling even faster than a year ago, the
notable increase in closings in recent months took a dent out of what
was available for sale. Realtors are acknowledging, with
increasing frequency lately, that buyers continue to be frustrated by
the tense competition and lack of affordable homes for sale in their
market.”

The latest Existing Home Sales Report shows that there is currently a 4.6-month supply of homes for sale. This remains lower than the 6-month supply necessary for a normal market and 5.8% lower than June 2015.
The chart below details the year-over-year inventory shortages experienced over the last 12 months:
Anything less than a six-month supply is considered a “Seller’s Market.”

Bottom Line

Let's
get together and discuss the supply conditions in your neighborhood to
be able to assist you in gaining access to the buyers who are ready,
willing and able to buy now!

Monday, July 25, 2016

Brexit 1 Month Later: The Impact on Mortgage Rates

Just over a month ago, the United Kingdom decided to withdraw from
the European Union in a decision commonly known as Brexit. At that time
there was a lot of speculation on how that decision would impact the
U.S. residential mortgage market. Today, we want to look at the impact
of the first 30 days.
Most believed that the Brexit decision would drive mortgage rates down and keep them down for some time. As CoreLogicreported:

“First-time
buyers can count on continued low mortgage rates to help with
affordability issues. Similarly, re-setting adjustable rate loans will
have less of a rate shock, and in some cases may even go down.”

What has actually happened?

Initially, rates did fall. However, Freddie Mac has reported that rates have stabilized and have actually increased marginally each of the last two weeks. This prompted Freddie MacChief Economist Sean Beckett to say:

“Post-Brexit
volatility tapered off over the last two weeks, allowing interest rates
to bounce back a bit from their near-record 30-year mortgage rate
lows.”

And, Capital EconomicsProperty Economist Matthew Pointon believes rates will continue to increase:“Given
we expect Brexit will have a minimal impact on the U.S. economy, we see
no reason to change our forecast for mortgage rates to reach 3.85% by
the end of this year, and 5.0% by the middle of 2018.”
For now, it appears that the impact of Brexit on the U.S. housing market was not as dramatic as some thought it could be.

Friday, July 22, 2016

Baby Boomers Are On the Move

According to a Merrill Lynchstudy, “an estimated 4.2 million retirees moved into a new home last year alone.” Two-thirds of retirees say that they are likely to move at least once during retirement.
As one participant in the study stated:

“In
retirement, you have the chance to live anywhere you want. Or you can
just stay where you are. There hasn’t been another time in life when
we’ve had that kind of freedom.”

The top reason to relocate cited was “wanting to be closer to family” at 29%, a close second was “wanting to reduce home expenses” at 26%.
A recent Freddie Macstudy found similar results, as “nearly
20 percent of Boomers said they would move closer to their
grandchildren/children compared to 13 percent who said they would move
to a warmer climate.”

Not Every Baby Boomer Downsizes

There
is a common misconception that as retirees find themselves with fewer
children at home, they will instantly desire a smaller home to maintain.
While that may be the case for half of those surveyed, the study found
that three in ten decide to actually upsize to a larger home.
Some
choose to buy a home in a desirable destination with extra space for
large family vacations, reunions, extended visits, or to allow other
family members to move in with them. According to Merrill Lynch:

"Retirees
often find their homes become places for family to come together and
reconnect, particularly during holidays or summer vacations."

Bottom Line

If your housing needs have changed, or are about to change, let’s get together to discuss your next steps.

Wednesday, July 20, 2016

Rents Skyrocket at Highest Rate in almost a Decade

The Consumer Price Index (CPI) was released by the Labor Department last week. An analysis by Market Watchrevealed the cost of rent was 3.8% higher than a year ago for the second straight month in June. That’s the strongest yearly price gain since 2007.
This coincides with a report released earlier this month in which AxioMetrics announced that rents are continuing to increase in 2016. The report revealed:

There was a 3.7% increase in effective rents in the second quarter of 2016 as compared to the same period last year.

That the effective rent growth this quarter compared to last quarter was 2.3%.

Annual
effective rent growth was positive in 49 of the top 50 markets, based
on number of units. Only Houston was negative, at -1.4%, as the fallout
from energy-industry job losses and excess construction continues.

Here is a graph to illustrate the rate of increase over the last several years:

Bottom Line

With
rents continuing to rise and mortgage interest rates still at historic
lows, let's meet up today to determine if you could turn your monthly
rental cost into a home of your own.

Friday, July 15, 2016

Homeownership Builds Wealth & Offers Stability

The most recent Housing Pulse Survey released by the National Association of Realtors revealed that the two major reasons Americans prefer owning their own home instead of renting are:

They want the opportunity to build equity.

They want a stable and safe environment.

Building Equity

John Taylor, CEO of the National Community Reinvestment Coalition, explains that those who lack the opportunity to become homeowners have a weakened ability to reinvest their wealth:

“We
traditionally have been huge supporters of homeownership. We see it as a
way to provide stability for households but also as an asset-building
strategy. If you continue to be a renter, locked out of the
homeownership arena, increasingly those things are further and further
out of reach. They’re joined at the hip. They perpetuate each other.”

Family Stability

Does owning your home really create a more stable environment for your family?
A survey of property managers conducted by rent.com disclosed two reasons tenants should feel less stable with their housing situation:

68% of property managers predict that rental rates will continue to rise in the next year by an average of 8%.

53% of property managers said that they were more likely to bring in a new tenant at a higher rate than negotiate and renew a lease with a current tenant they already know.

We can see from these survey results that renting will provide anything but a stable environment in the near future.

Bottom Line

Homeowners enjoy a more stable environment and at the same time are given the opportunity to build their family’s net worth.

Thursday, July 14, 2016

Whether you are considering the purchase of your first home or
trading up to the home your family frequently fantasizes about, there
are three crucial questions you must know the answer to:

What is the minimum down payment required to purchase a home?

What is the minimum FICOscore required to qualify for a mortgage?

What is the maximum Back-End DTI Ratio allowed?

A survey conducted by Fannie Mae
revealed startling information: most Americans don’t know the answer to
these three crucially important questions. Here is a graphic showing
the results of the survey:
The percentages are quite disturbing but can explain why so many people believe they are not eligible to purchase a home whether it is a first home or a trade-up home. Here are the actually requirements as per Fannie Mae:

Bottom Line

If you are considering purchasing a home, make sure you are aware of all your options before moving forward.

Tuesday, July 12, 2016

4 Reasons to Buy This Summer!

Summer is here! The temperature isn't the only thing heating up
right now, so too is the housing market in many areas of the country!
Here are four great reasons to consider buying a home today instead of
waiting.

1. Prices Will Continue to Rise

CoreLogic’s latest Home Price Index
reports that home prices have appreciated by 5.9% over the last 12
months. The same report predicts that prices will continue to increase
at a rate of 5.3% over the next year. The Home Price Expectation Survey polls
a distinguished panel of over 100 economists, investment strategists,
and housing market analysts. Their most recent report projects home
values to appreciate by more than 3.2% a year for the next 5 years.
The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

2. Mortgage Interest Rates Are Projected to Increase

Freddie Mac’s Primary Mortgage Market Survey
shows that interest rates for a 30-year mortgage have remained around
4%. Most experts predict that they will begin to rise over the next 12
months. The Mortgage Bankers Association, Freddie Mac & the National Association of Realtors are in unison, projecting that rates will be up almost a full percentage point by this time next year.
An
increase in rates will impact YOUR monthly mortgage payment. A year
from now, your housing expense will increase if a mortgage is necessary
to buy your next home.

3. Either Way You are Paying a Mortgage

As a paper from the Joint Center for Housing Studies at Harvard University explains:

“Households
must consume housing whether they own or rent. Not even accounting for
more favorable tax treatment of owning, homeowners pay debt service to
pay down their own principal while households that rent pay down the
principal of a landlord plus a rate of return. That’s yet another reason
owning often does—as Americans intuit—end up making more financial
sense than renting.”

4. It’s Time to Move On with Your Life

The
‘cost’ of a home is determined by two major components: the price of
the home and the current mortgage rate. It appears that both are on the
rise.
But what if they weren’t? Would you wait?
Look at the
actual reason you are buying and decide whether it is worth waiting.
Whether you want to have a great place for your children to grow up, you
want your family to be safer or you just want to have control over
renovations, maybe now is the time to buy.

If the right
thing for you and your family is to purchase a home this year, buying
sooner rather than later could lead to substantial savings.

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About Me

i am a mom. and a wife. and a realtor. when i grow up i want to spend all day taking pictures and then spend all night looking at them. in the meantime, i am going to keep selling houses. for sellers who are moving on, and to buyers who are moving in. real estate is such a part of our daily lives, that it carries over into everything we are. and it is of interest to so many people. so i thought i would start talking. who knows...i may actually find that i have something interesting to say :)